As the aphorism says, “Today is yesterday’s pupil”. As we celebrate the 25th anniversary of the establishment of the Hong Kong Special Administrative Region, we should equip ourselves much better for the next 25 years and beyond by reviewing the great challenges and crises that almost brought down the city in the past.
Almost immediately after July 1, 1997, the day on which Hong Kong returned to China, when Hong Kong people were still indulging in the joyfulness of reunion, a financial storm suddenly struck.
The Asian Financial Crisis began in Thailand in July 1997 when the Thai government was forced to float the baht because of speculative attacks on the currency led by American billionaire investor George Soros. It triggered a series of currency devaluations and a massive flight of capital, spreading quickly to neighboring economies, including Hong Kong.
Having secured strong support from the central government to use the country’s foreign reserves (US$140 billion), if required, to defend against the speculative attacks, the HKSAR government decided on Aug 14, 1998, to declare war on speculators. It bought up HK$118 billion ($15 billion) worth of stocks and futures in two breathtaking weeks of trading, and eventually drove out international speculators.
The central government came to Hong Kong’s aid again when another global financial crisis, often referred to as the Great Recession, hit the world in 2008. The financial tsunami, caused by the burst of the housing market bubble in the US, took its toll on individuals and institutions around the globe.
Hong Kong was not immune to the Great Recession, and the city was plunged into sluggish exports, shrinking domestic demand, a high unemployment rate and a 2.5 percent regression in GDP.
While many multinational corporations in Hong Kong chose to downsize their businesses, local mainland-funded enterprises, however, refrained from cutting staff, and some even hired more from the financial sector during that period to support Hong Kong’s economy.
The economic predicament Hong Kong suffered from the two financial crises has revealed the fact that despite Hong Kong’s strong financial reserves, if it had acted alone, it might not have been able to stand against the speculative attacks from international “financial crocodiles” or the worldwide financial slump
In addition, then-premier Wen Jiabao announced 14 measures to revitalize Hong Kong’s economic vitality, including speeding up related infrastructure projects in the Pearl River Delta to enhance the financial and economic cooperation between the mainland and Hong Kong.
The economic predicament Hong Kong suffered from the two financial crises has revealed the fact that despite Hong Kong’s strong financial reserves, if it had acted alone, it might not have been able to stand against the speculative attacks from international “financial crocodiles” or the worldwide financial slump.
And this is exactly why the “one country, two systems” is so valuable to Hong Kong. Whenever Hong Kong is in trouble, the central government’s strong and unswerving support always is timely.
The Individual Visit Scheme and the Closer Economic Partnership Arrangement between the mainland and Hong Kong were the two typical examples of preferential policies put forward by the central government to help Hong Kong revitalize its economy promptly after the disastrous SARS epidemic struck in 2003.
The above two financial crises have taught us a lesson, and in view of the deteriorating Sino-US relations, we should prepare for the worst: Hong Kong might one day be forced out of the SWIFT system. Hong Kong stepping up cooperation with the mainland to speed up the pace of internationalization of the renminbi could be one of the directions.
The 2003 SARS epidemic and the fifth wave of the COVID-19 pandemic have also devastated Hong Kong economically and emotionally. The deadly 2003 epidemic caused 299 deaths, including eight public-hospital medical personnel. However, it was the fighting spirit and professionalism Hong Kong medical workers demonstrated during the epidemic that impressed the world. They were hailed as Asian heroes.
The COVID-19 pandemic, which erupted in late 2019, is still prevalent in Hong Kong, and so far has claimed more than 9,100 lives in the city. A group of defiant medical workers who had been incited by subversive forces held illegal strikes in early 2020 to demand the closure of the boundary with the mainland. Their industrial actions caused a loud public outcry, accusing them of politicizing the pandemic.
On the other hand, the central government’s large-scale rescue actions for Hong Kong during the fifth wave of the coronavirus outbreak are particularly impressive and heartwarming. This will certainly take the mainland-HKSAR relationship to a new level.
Nevertheless, we should be watchful for the anti-China sentiment harboring in the minds of some local residents, especially some youngsters. They always look for opportunities to alienate the mainland-HKSAR relationship. There are reasons for the formation of such sentiment — the lack of patriotic education in Hong Kong during the British rule, the long-time political smear campaign against China by foreign powers, and the slow social mobility: All these have contributed to the lack of a sense of national identity among some Hong Kong residents and caused discontent. Enhancing the sense of national identity and cultural cohesiveness among the younger generation has thus become an important task for the incoming HKSAR government.
Lacking a national security law was the Achilles’ heel of Hong Kong, and the city eventually paid a price for it throughout the seditious riots in 2019, making it the darkest chapter in Hong Kong’s history. Thanks must be given for the central authorities’ prompt action to enact the National Security Law for Hong Kong in June 2020 to curb effectively the citywide social unrest.
On the other hand, the National Security Law outlaws acts of secession, subversion, terrorism and collusion with foreign forces, without covering all seven offenses spelled out in Article 23 of the Basic Law. That is why Article 7 of the National Security Law requires the HKSAR to enact local legislation for safeguarding national security according to Article 23 of the Basic Law as soon as possible. That has become another important task for the incoming administration.
With the implementation of the National Security Law and the subsequent revamping of the HKSAR’s electoral system, “patriots administering Hong Kong” has materialized, ensuring the smooth running of “one country, two systems”. Let’s pick up our “can-do” spirit again and walk together toward a brighter future of Hong Kong for another 25 years and beyond!
The author is a member of the Hong Kong Association of Media Veterans and a freelance writer.
The views do not necessarily reflect those of China Daily.